The UK’s electricity market operates under a marginal‑pricing system: the wholesale price is set by the most expensive generator needed to meet demand, typically gas plants, even when cheaper renewables supply most of the power.
Because the grid can’t always transport surplus renewable power, especially from remote wind farms, operators are paid to shut down output, and often gas plants are simultaneously paid to turn on to balance demand.
These constraint payments and inefficiencies ultimately land on energy bills, shielding consumers from full benefit of clean and low‑cost generation.
Source: david-yammer-murdoch